Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold futures gained 0.7% to close above $1,944, another new record settlement, as falling consumer confidence and dimming hopes for a quick stimulus package undermined equities and boosted demand for safe havens. The metal notched a new intraday high of $1,974.70 before slipping back on profit-taking.

Consumer confidence weakened in July, with the Conference Board index dropping to 92.3 from June's revised 98.3 as Americans became less optimistic about the economy because of the COVID-19 resurgence.

Senate Republicans unveiled a $1 trillion aid package that they are calling their last major legislative response to the pandemic. Much smaller than the $3 package passed by the House in May, the plan calls for laid off workers to receive up to 70% of lost wages while eliminating employer liability for infections among workers, among other provisions.

Wall Street fell on the downbeat consumer news and fears that the stimulus plan will be delayed by contentious politics. The Dow and S&P 500 each lost around 0.7% while the Nasdaq fell 1.3%. Treasury yields also fell as investors shifted toward safety.

The dollar picked up 0.1%, bouncing off its two-year low ahead of tomorrow's conclusion of the Fed's meeting on monetary policy. With coronavirus cases continuing to rise sharply in many states, the central bank is expected to maintain its easy money policies of near-zero interest rates and unlimited quantitative easing.

Goldman Sachs lifted its forecast or gold to $2,300 per ounce in the next 12 months, up from $2,000. The leading investment bank cited record-high US national debt, global currency debasement because of COVID-19 easing, and the rising risk of long-term inflation as reasons.

The other precious metals were mixed, with platinum adding 2% while silver and palladium slid 0.8% and 0.2%, respectively.

At the Comex close: August gold gained $13.60 to $1,944.60; September silver dropped 20 cents to $24.30; October platinum added $19.60, to $986.20; September palladium dipped $4.20 to $2,365.50 an ounce.